Retail-low Prices

[Back Yard Brewer]

I have been following the RETAIL Craftbrewer Goes Liquid with much amusement. It is amusing because of some of the negative posts. I mean you just can't please everyone. When someone sells a product at an extremely good price and be that what ever, some parts of the world cry fowl :wacko: There seems to be this myth that there is a catch. Having myself been involved with a bussiness and contimplating another sometime in the future I can relate to cheap prices. To me its about sustaining your market share. Who's been to a supermarket bought a bargain and then said "shit I might as well get that as well" I know I have. The same reasoning can apply to any bussiness. Yes the Wyeast from Craftbrewer is bloody cheap and personally knowing what the wholesale price is, yes there is bugger all mark up. Thats where my previous statement comes into effect (market share). What does urk me as a consumer is when any bussiness wants to corner a market and be that whatever market. My LHBS sells their activator packs for $17.50!! needless to say I don't shop there. Personally down here in S.A I will try and look after the little blokes like Beerbelly, Bake and Brew e.t.c by which I have no afilliation with either. The little bloke hopefully will keep the big ones honest I have dealt with Ross and his service is exceptional and have no quams in dealing again when necessary. So cheap prices - no problems here!!!

BYB

 

[Online Brewing Supplies]

I have been following the RETAIL Craftbrewer Goes Liquid with much amusement. It is amusing because of some of the negative posts. I mean you just can't please everyone. When someone sells a product at an extremely good price and be that what ever, some parts of the world cry fowl :wacko: There seems to be this myth that there is a catch. Having myself been involved with a bussiness and contimplating another sometime in the future I can relate to cheap prices. To me its about sustaining your market share. Who's been to a supermarket bought a bargain and then said "shit I might as well get that as well" I know I have. The same reasoning can apply to any bussiness. Yes the Wyeast from Craftbrewer is bloody cheap and personally knowing what the wholesale price is, yes there is bugger all mark up. Thats where my previous statement comes into effect (market share). What does urk me as a consumer is when any bussiness wants to corner a market and be that whatever market. My LHBS sells their activator packs for $17.50!! needless to say I don't shop there. Personally down here in S.A I will try and look after the little blokes like Beerbelly, Bake and Brew e.t.c by which I have no afilliation with either. The little bloke hopefully will keep the big ones honest I have dealt with Ross and his service is exceptional and have no quams in dealing again when necessary. So cheap prices - no problems here!!!

BYB

You raise so very valid points there,I dont want a woolworths /coles senario happening in the HB scene.You know go in cheap and then later you cant get a choice because every body has been put out of business.I would like to stay in Business but I have to make a profit to keep the door open.I dont have money to burn like woolworths.I offer the best prices I can ..Every body wants a bargain but do you want a choice a well ?
GB My 2c worth
GB

 

[SJW]

Keep talking like this and Ross will up his Wyeast price to $15.95 just to make everyone happy

 

[Ross]

Keep talking like this and Ross will up his Wyeast price to $15.95 just to make everyone happy

tempting...very tempting B)

cheers Ross

 

[Batz]

I am sure no retailer likes to be under-cut.
This is why you don't see many bulk buys on this site anymore,there still happening but on a quieter note...wink wink ..nudge nudge..say no more!


Batz

 

[pablo_h]

You raise so very valid points there,I dont want a woolworths /coles senario happening in the HB scene.You know go in cheap and then later you cant get a choice because every body has been put out of business.I would like to stay in Business but I have to make a profit to keep the door open.I dont have money to burn like woolworths.I offer the best prices I can ..Every body wants a bargain but do you want a choice a well ?
GB My 2c worth
GB

Cheers, You've been the cheapest store for a long time anyway. You're not going to lose any WA business because your prices are good, (they were the lowest for Wyeast anyway beforehand, and probably still are for hops and postage costs).

 

[sinkas]

cry fowl :wacko:

ROFL, thems damned poultry

 

[Online Brewing Supplies]

ROFL, thems damned poultry

Mate I like a laugh as much as you ( and I could do with one) but I just dont get it? Enlighten the ignorant.ROTHF wondering. :huh:
GB

 

[Black Dog Brewery]

Mate I like a laugh as much as you ( and I could do with one) but I just dont get it? Enlighten the ignorant.ROTHF wondering. :huh:
GB

I would have to agree. To quote the wikipedia ...."As opposed to "fowl", "poultry", on the other hand, is a term for any kind of domesticated bird or bird captive-raised for meat or eggs; ostriches for example are sometimes kept as poultry, but are neither gamefowl nor waterfowl. In colloquial speech, the term "fowl" is however often used near-synonymously with "poultry" or even "bird", and many languages do not distinguish between "poultry" and "fowl". Nonetheless, the fact that Galliformes and Anseriformes most likely form a monophyletic group makes a distinction between "fowl" and "poultry" warranted."

While the attempt to associate a fowl with poultry was evident they are clearly not the same thing, Im not laughing ...... :lol:


Cheers BDB

 

[Boozy the clown]

Mate I like a laugh as much as you ( and I could do with one) but I just dont get it? Enlighten the ignorant.ROTHF wondering. :huh:
GB

QUOTE (Back Yard Brewer @ Jul 9 2008, 07:11 PM)
cry fowl


ROFL, thems damned poultry

Don't think he can - may set feathers flying...

 

[sinkas]

GB, the geezer who started this thread, made a error of using Fowl, a bird, instead of foul, when exclaiming that people where "crying fowl"

It was very funny, but you had the be there.

 

[alexbrand]

Funny topics here in the forums... really...

in Germany I pay 5.49 for a smack pack of Wyeast. This ist AUD 9.04. I think shipping to Germany from the US is more expensive than to Oz.... but well... what makes you all so sure that all the HBS have to pay the same price to Wyeast? Doesn't anyone think the conditions vary depending on the amount of packs the HBS buys?

Okay... had to say this...

Alex

 

[Adamt]

The key in this whole debate was brought up in the thread. I can almost guarantee that Ross has purchased a massive order (compared to other Aussie retailers) and has secured a much better price.

If Ross can keep afloat selling at that price, good on him. He'll sell lots of yeast.

People need to stop mixing business with personal preference and emotion.

 

[bconnery]

I don't know that Ross's order will be that much larger than some of the bigger retailers around, the little stores yes.
I also don't believe that shipping is that much more expensive to Germany than to here, which makes Ross's price against that quoted in the post above very similar and reasonable.
The key to this whole point in my book is the difference in rate with the US dollar.
Whether you take the view that Ross is entering at a time when the dollar is at near parity and thus has an advantage in what he can offer or whether you point out that despite a large change over time in the exchange rate we haven't seen a large change in yeast price I believe this is a major factor in the price offered, Ross even said so in the retail thread.

A few posts have discussed supporting the little guys but with Craftbrewer we are not exactly talking about a multi national corporation here. This is a business that until recently employed two people one of whom was his his son.
It now employs a massive three....

If someone wants to bring the price for liquid yeasts in Australia to a level more comparable to what the rest of the world pays, US aside, I realise we can't have it that good, then I for one will support them!

 

[Back Yard Brewer]

The key to this whole point in my book is the difference in rate with the US dollar.
Whether you take the view that Ross is entering at a time when the dollar is at near parity and thus has an advantage in what he can offer or whether you point out that despite a large change over time in the exchange rate we haven't seen a large change in yeast price I believe this is a major factor in the price offered, Ross even said so in the retail thread.

Yes that is an interesting statement, one I have pondered. Keeping that in mind does that mean other imported items should also come down a little in price as well :unsure:

BYB

 

[bconnery]

Yes that is an interesting statement, one I have pondered. Keeping that in mind does that mean other imported items should also come down a little in price as well :unsure:

BYB

Depends a lot on whether they were marked up much to begin with, and on what other factors there are.
If we are talking US hops for example then demand will probably keep them higher.

Non brewing related items on the other hand... well who cares

 

[Cortez The Killer]

Surely there is an opportunity for some enterprising individuals to start packaging and selling their own liquid yeasts in Australia

I'd imagine it'd take a little bit in set up costs but it wouldn't be too hard for people with some lab experience

And the brewing market seems to be ever expanding

Just a thought

Cheers

 

[Screwtop]

Surely there is an opportunity for some enterprising individuals to start packaging and selling their own liquid yeasts in Australia

I'd imagine it'd take a little bit in set up costs but it wouldn't be too hard for people with some lab experience

And the brewing market seems to be ever expanding

Just a thought

Cheers

Hmmm, a quick MA:

Maybe 1500Ag brewers in OZ, maybe 70% using liquid yeast, maybe 30% not yeast banking and using first gen yeast. Say a round 1000 AG brewers and maybe 1000 kit brewers using liquid yeast making on average 15 beers each per year with first gen liquid yeast. So sales of 40,000 units at 100% market share at retail $9.00 per unit = total sales AUD270,000


Assumptions: Market share 20%

Gross Sales: AUD54,000

Direct Expenses:
COS: Raw Materials 10%
Other: 10%

Gross trading profit AUD43,200

Operating Expenses:
Total ex marketing 38%
Marketing 10%

Nett Before Tax Operating Profit AUD17,280

Add back interest costs etc, less borrowing costs, lets say a nice income of $20,000 noice :lol:


Not viable as a stand alone business, would be a long journet to BE point.

 

[dicko]

:icon_offtopic: Now, come on Ross, why can't you start to import PETROL AND DIESEL and retail it in Australia at a fair and reasonable price. After all we all know that the price we are paying is a price inflated by the local oil companies to keep the govenments happy and to line the pockets of the oil companies with all our hard earned cash.

Back on topic!
All people in business should know their bottom line on their products or services.
We, as consumers, are just lucky that with the Wyeast situation we are comparing "apples with apples".
Mmmm! I wonder how long it will be before we are seeing "home brand" liquid yeasts.

In this situation I personally will compare the purchase price from each of the retailers and factor in the freight costs from each and then make a decision. Time for delivery is also an important consideration.
I would bet that Ross has considered this point when pricing his yeasts and knows that his prices are very attractive to the local market as well as gaining sales in yeast when purchased with other items on mail order.
It appears that each state except NT and TAS have a choice of local suppliers and each consumer in these areas will consider his or her options.
As we don't live in communist China competion in business is a fact of life in this country and all businesses just have to deal with it.

My two bobs worth!! (20c)

Cheers

 

[Cortez The Killer]

Not viable as a stand alone business, would be a long journet to BE point.

Might be an option for someone already running a lab who would want to generate another income stream

Could be started with a couple of popular strains - I don't imagine that it would be a major strain on existing operations

It's interesting on US forums most brewers use a fresh pack of liquid yeast for every batch and harvesting / slanting is unheard of and @ only $5 a pack it's comparable to dry yeast, further the low initial cost negates the savings to be had in yeast farming

I don't think it'd take long to develop a major market share if a comparable RRP could be achieved here

And by making it locally you eliminate excessive shipping costs which retails here have indicated are a major factor in pricing liquid yeast here

Cheers